Drewry: Container shipping in 'extended down cycle'

Drewry Maritime Research says the container shipping industry “remains in an extended down cycle” due to the entry of new and larger vessels across all trades. The consulting firm’s Container Forecaster reported for the first quarter of the year that "some of these trade routes have also not lived up to expectations in terms of cargo flows and the sharp influx of many new ships of at least 8,000 TEUs,” which has resulted in significant declines in spot freight rates, particularly in the Asia-to-east coast South America trade. Drewry has forecast a 5.7 percent global supply increase this year, followed by a 6.7 percent increase in 2015, with the emphasis on the delivery of 115 additional ultra-large containerships...